AMD lays off 430 amid heavy losses

Faced with an urgent need to cut costs, Advanced Micro Devices laid off 430 workers on Wednesday as it looks to get back on track.

AMD had hinted that layoffs were coming when it acquired ATI Technologies last year, but it has also been struggling in the first half of this year with its main processor business. An ongoing price war with Intel and Intel's renewed competitive position--combined with AMD's own supply chain missteps--have led to heavy losses. AMD was forced to take out $2.2 billion in notes to keep the lights on as it awaits the launch of quad-core server and desktop processors later this year that it thinks will erase the advantage Intel has with its own quad-core processors.

The job cuts represent 2.6 percent of the company's workforce. The San Jose Mercury News reported that 40 of the jobs come from AMD's Sunnyvale, Calif., headquarters as well as a nearby Santa Clara facility acquired along with ATI. An additional 50 jobs have been axed at the former ATI headquarters in Markham, Ontario, while 80 jobs are now gone in Austin, Texas, where AMD has a sizable presence.